Decentralized cryptocurrency exchange GMX has been reportedly used by a user for malicious actions. The founder of the ZigZag platform under the pseudonym Taureau has previously warned about possible problems.
An unknown person took advantage of the “minimum spread” and “zero price impact” features of the Avalanche network token (AVAX) to manipulate the price of the asset. The price manipulation affected GLP holders who provided GMX with liquidity in the form of AVAX.
GMX has reported:
“Open interest on AVAX is capped at $2 million long and $1 million short.”
Joshua Lim, head of derivatives at Genesis Trading, has said the unidentified individual “successfully profited by entering large positions with zero slippage.” After that, he moved AVAX/USD to centralized exchanges and repeated the steps five times.